TORONTO, ONTARIO -- (Marketwire - Sept. 16, 2010) -
Crown Gold Corporation (“Crown“ or the “Company“) (TSX VENTURE: CWM) is pleased to announce assays from recent channel sampling of a well-exposed quartz vein on its McKenzie Island property at Red Lake in northwestern Ontario.
Individual channel samples on two segments of the vein assayed up to 122 g/t gold (3.57 ounces/ton) over 0.5 m with most samples (8 out of 14) returning assays greater than 8 g/t gold. Selected channel assay results are tabulated below. Channels CC-05 to CC-16 are sequential along a 25-m segment of vein, while adjacent channels CC-23 and CC-24 are approximately 4 m apart on a vein segment about 45 m to the NNW. Widths are horizontal and approximately 97% of true widths. The segments occur within a 90-m strike length of exposed shearing with quartz veining.
McKenzie Island Trench Selected Channel Assay Results
channel metres g/t Au
CC-05 0.40 3.18
CC-06 0.55 8.40
CC-07 0.60 31.37
CC-08 0.75 21.85
CC-09 0.55 15.09
CC-10 0.50 5.70
CC-11 0.32 4.61
CC-12 0.35 18.87
CC-13 0.45 16.46
CC-14 0.65 0.01
CC-15 0.80 1.79
CC-16 0.40 1.34
CC-23 0.50 122.42
CC-24 1.25 12.04
All assays reported in this news release were performed on sawn channel samples generally weighing between 0.5 and 1.9 kg. All samples were analyzed by standard fire assay/AA or fire assay/gravimetric methods at SGS Laboratories in Red Lake. Crown's QA/QC protocol includes the introduction of standard, blank and replicate samples. QA/QC protocols included the introduction of standards, blanks and replicate samples.
The prominent mineralized quartz vein segments occur mostly in a granodiorite adjacent to, and west of, the contact with a mafic dyke in a NNW striking, composite shear zone, all recently exposed by mechanical trenching and stripping along 200 m of strike. These quartz-gold occurrences were originally prospected by shallow trenches and drilled by short holes in the 1930s when assays as high as 43.2 g/t (1.26 oz/t) gold across 1.2 m were reported. Surface geophysical data completed by Crown earlier this year indicates that a strong linear conductive trend, probably coincident with the shear, and a magnetic anomaly reflecting a mafic dyke adjacent to the quartz veining, extend 900 m NNW across the property.
The McKenzie Island property also contains an east-west trending gold-bearing quartz vein system, the “MacAndrew Trend“, representing another target not yet examined in detail by Crown. Drilling of the mineralized zone is planned to start within a few days.
Crown's Red Lake property consists of six patented claims on McKenzie Island, approximately 4 km southwest of the former McKenzie Red Lake Mine, which produced more than 651,000 ounces of gold at an average grade of 9.5 g/t (0.277 oz/t) from veins in the McKenzie Stock, a very similar overall geological setting. Crown's property is situated within and near the northern edge of the Dome Stock, similar in age to the McKenzie Stock. Total production from the whole Red Lake Camp to December 31, 2009, is 25.5 million ounces of gold at an average grade of 0.46 oz/ton (15.8 g/t).
Crown Gold, formed by the recent amalgamation of Crown Minerals and
Gold Summit, is exploring for high grade gold and silver deposits in Nevada and high grade gold deposits in both Nevada and Ontario.
In Nevada, Crown has NI 43-101 compliant inferred resources of approximately 300,000 ounces of gold and indicated resources of 37,000 ounces of gold at its Monte Cristo and Sugarloaf properties at a cut-off grade of 1 g/t. These are the most advanced of five, high-grade, epithermal vein systems controlled by the company. The existing resources at Monte Cristo and Sugarloaf remain open along strike and at depth. Planning for further exploration and development either underground or by surface drilling is underway. The three other properties, Blue Sphinx, Gold Springs and Black Warrior, all contain well-defined and essentially undrilled targets.
In northwestern Ontario, Crown has two other gold properties in addition to McKenzie Island. At Tabour Lake, sampling and previous drilling at the old Sakoose Mine confirm that extension of previously mined grades of 14 g/t gold are present down plunge and open at depth. Drilling of this property is planned in early 2011. A large property package at Surprise Lake in the Uchi Belt, east of Red Lake, contains a large number of greenstone gold occurrences and surface work is planned in 2011 to identify drill targets. These are all classic greenstone gold targets.
In northeastern Ontario, the company holds strategic land positions adjacent to Trelawney's Chester discovery, at the old Stairs Mine and in the Timmins camp. Evaluation of drill targets on these properties will continue.
Data concerning the McKenzie Island project in this press release has been reviewed by Robert Kuehnbaum, P.Geo., who is the Qualified Person (as defined by NI 43-101) for Crown's McKenzie project.
Forward-looking Information:
This news release may contain or refer to forward-looking information. All information other than statements of historical fact that address activities, events or developments that Crown believes, expects or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond Crown's ability to control or predict that may cause actual events or results to differ materially from those discussed in such forward-looking statements. Any forward-looking statement, speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Crown disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although Crown believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, undue reliance should not be placed on these forward-looking statements due to the inherent uncertainty therein.
Historical information, such as the reported assay results for the McKenzie Island property from the 1930s, pre-dates NI 43-101 and, accordingly, is not compliant with the requirements of NI 43-101; such historical information should not be relied upon.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or contents of this news release.
For more information, please contact
Crown Gold Corporation
Mr. Stephen Dunn
President and CEO
(416) 822-3343
or
Crown Gold Corporation
Dr Anthony Taylor
Executive Chairman
(775) 843-5838
